Farm Energy IQ Farms Today Securing Our Energy Future Bioenergy - - PowerPoint PPT Presentation

Farm Energy IQ

Farms Today Securing Our Energy Future Bioenergy Feedstock Production for Agricultural Producers

Greg Roth, Penn State Department of Agronomy

Farm Energy IQ

Bioenergy Feedstock Production for Agricultural Producers

Greg Roth Department of Plant Science, Penn State

• Review adaptation of crops and residues such

as corn, corn cobs, oilseed crops such as canola and soybean, and biomass crops such as Miscanthus and shrub willow

• Review crop management and infrastructure

requirements to produce feedstocks

• Estimate production costs of various feedstocks

Objectives

• Most widely used

feedstock for bioenergy

• Provides an experience

base for other potential bioenergy commodities

• Main bioenergy is ethanol

with distillers grains, corn

• il, and CO2 as co‐products
• Key drivers in production

have been RFS, exports, expanded co‐product markets and reduced energy use

Corn

• For 2014, costs of

production are estimated to be $4.67/bushel but could vary with yield.

• Ethanol returns can vary

with prices

• Good long term returns

for producers and processors are essential

Production Costs

Price Amount Total

Corn Price $5.00 160 bu/ac $800 Variable costs Seed $3.44 /1000 34,000 $117 Fertilizer NPK +Lime $134 Pesticides $51 Other Trucking, Ins., Interest, Drying $126 Fixed Costs Land $150 Labor $45 Machinery $124 Net $53

Source: http://aede.osu.edu/research/osu‐farm‐management/enterprise‐budgets

• Corn cobs are a

potential additional product that can be harvested and used for bioenergy

• Historically used as

heat source in Midwest and Europe

• Cob removal has little

to no environmental impacts

Corn Cobs

• Corn cobs can be:

– Shelled from ear corn – Cleaned from a corn cob mix harvested with the combine and then cleaned from the grain – Collected from the back of the combine, sometimes mixed with husk and stover

Corn Cob—Management

• One example is this

H120 cob harvester from Redekop

• Tow‐behind

cleaner separates cobs and discharges into wagon

• Adjustable to

include material

• ther than cob

Corn Cob—Combine Separation

Photo credit: http://www.cobharvest.com/h120‐cob‐harvester/

• POET developed a system

(EZ bale) that consists of a headed that stomps and rolls the stalks and then discharges the cobs and upper stover into a windrow.

• In the second pass, cobs

and stover from plant tops are collected with a baler set to minimize soil contamination

Corn Cob—Harvest from Windrow

Photo credit: http://poet‐dsm.com/biomass

• Cobs collected with
• ther materials coming
• ut of the combine

(material other than cob, or MOC)

• MOC increases the

yield per acre and also captures some of the best fraction of the stover above the ear.

Corn Cobs—Management

• While most production

costs are covered by the corn production, harvesting results in additional costs

• This Purdue study

indicated that cob harvesting cost approximately $54/ton

• Some farmers feel it

can be done for less

Corn Cobs—Production Cost

Price Amount Total Cob Price $100 1 ton/ac $100 Variable costs Storing, Piling $4.72 Fertilizer Replacement $8.62 Other (Fuel, labor, lubrication, etc. 18.76 Total 32.10 Fixed Costs Machinery (Harvest wagon) $22.34 Net Return $46 Source: https://www.extension.purdue.edu/extmedia/ID/ID‐417‐W.pdf

• Corn cobs have alternative

markets such as mushroom compost, animal bedding, and metal polishing compound

• Stover removal can reduce

the need for “residue management” practices like stalk chopping or tillage and provide some value to cob harvest.

Corn Cobs/Stover—Added Value Uses

Soybean

Typical yield: 3,000 lb/acre (50 bu/acre) Potential use: Biodiesel Animal ag co-product: Soybean meal Other potential products: Straw (1,000 lb/acre) Biodiesel yield/ac:74 gal/ac or 9.1 million Btu Adaptability to no-tillage: High Existing infrastructure: High N fertilizer Inputs: 0 lb/acre Other Comments: Widely grown for protein

• n livestock farms; oil used for food and
• biodiesel. Good rotational crop to break

pest cycles and produce nitrogen for subsequent crops. Also, soybeans are drought tolerant and can be double cropped following barley or wheat. Soybean straw can be used as direct combustion feedstock.

Price Amount Total Soybean Price $14.00 55 bu/acre $770 Variable costs Seed 0.41/ 1000 180000 $74 Fertilizer NPK +Lime $59 Pesticides $32 Other Trucking, Ins., Int., Drying $63 Fixed Costs Land $150 Labor $30 Machinery $108 Net $254/acre

Soybean—Production Costs

Canola/Rapeseed

Typical PA yield: 2500 lb/acre (50 bu/acre) Potential use: Biodiesel Animal ag co-product: Canola meal Other potential products: Straw (1000 lb/acre) Biodiesel yield/ac: 143 gal or 17.5 million Btu Adaptability to no-tillage: Medium Existing infrastructure: Medium N fertilizer inputs: 100 lb/acre Other Comments: Limited production in PA but widely grown in Europe because of high

• il yield per acre and low saturated fat in oil,

which contributes to high quality for

• biodiesel. Canola meal is high protein feed

comparable to soybean meal. Winter and spring varieties exist. Winter canola is more adapted to southern half of state. Higher N requirement than soybeans.

Price Amount Total

Canola price $0.20 2,000 lb $400 Variable costs Seed $27 Fertilizer NPK + Lime $58 Pesticides $16 Other Trucking, Ins., Int., Drying $21 Fixed costs Land $75 Labor $15 Machinery $102 Total costs 314 Net $86/acre

Canola—Production Costs

Photo credit: http://www.ksre.ksu.edu/bookstore/pubs/mf2421.pdf

Canola is managed like a small grain, but the straw has little value, reducing its potential to compete with wheat in some areas

Canola Pressing

Canola Meal

Oilseed Economics

http://www.vsjf.org/resources/reports‐tools/oilseed‐calculator Source:

Switchgrass

Typical PA yield: 8,000 lb/acre Potential use: Direct combustion (DC), cellulosic ethanol Animal ag co-product: Aftermath grazing Other potential products/benefits: Wildlife habitat, bedding, absorbent Energy yield/ac: 56.4 million Btu (DC) Adaptability to no-tillage: High Existing infrastructure: High N fertilizer inputs: 0-100 lb/acre Other Comments: Widely adaptable, especially on droughty soils. Provides excellent conservation and wildlife habitat. Can be slow to establish. Harvest schedule can impact wildlife benefits and ash content.

Switchgrass—Management

Month Operation Inputs March Harvest Fertilizer, Diesel April Bale and Store Diesel May Spread Fertilizer Seed, Fertilizer, Diesel May/ December Haul to market Diesel

Year 1 Years 4‐15 Yield (tons/acre) 7 Price ($/ton) $0 $385 Returns $49 $450 Variable Costs Seed $80 $0 Soil Fertility $155 $136 Weed Control $53 $0 Establishment and Maintenance $140 $0 Harvesting $0 $141 Total Costs $567 $277 Net Return/Acre ($567) $108 Annual Income over 15 yr $46

Switchgrass—Production Costs

Source: http://www.newbio.psu.edu/Extension/resources.asp

• Low impact production system
• Cost of production: $60‐80/ton and need for

densification

• Competition with wood chips in Northeast
• Some alternative uses can provide alternative markets:

absorbents, animal bedding, mulch, wildlife cover, conservation program crop and hunting preserve use are some examples

• Can production costs be offset with other benefits

(conservation, wildlife, hunting, recreation, off season land management, subsidies)?

Switchgrass—Biomass Issues

Miscanthus—Adaptation

• Widely adapted warm season

perennial grass, native to eastern Asia. Grown in Europe and the Southern, Eastern and Midwestern U.S.

• Although a warm season

species, it can grow early in the spring even at relatively low temperatures (43°F). Growth stops with autumn frost.

• Once established, yields up to

10 tons/acre may be possible

Miscanthus—Management

Month Operation Inputs April Mow Diesel April Plow site Diesel April Fertilize Fertilizer Diesel May Plant Rhizomes Diesel May Apply Herbicide

Establishment Year

Current industry practice is to plant the rhizomes four inches deep and three feet apart within rows. Maintain three feet between rows. Some replanting to fill gaps may be necessary in the second year.

Source: http://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/stelprdb1045274.pdf

Miscanthus—Management

Month Operation Inputs April Spread Fertilizer Seed, Fertilizer, Diesel March Harvest Fertilizer, Diesel April Bale and Store Diesel May/December Haul to market Diesel

Post Establishment Years

Year 1 Years 4‐15

Yield (tons/acre) 10 Price ($/ton) $0 $45 Returns $0 $450 Variable Costs Rhizomes $700 $0 Soil Fertility $155 $134 Weed Control $48 $237 Establishment and Maint. $115 $155 Harvesting $0 $75 Total Costs $1018 $312 Net Return/acre ($1018) $80 Annual income over 15 yrs $94

Miscanthus—Production Cost

Photo credit: http://www.newbio.psu.edu/Extension/resources.asp

• Low impact production system‐ Nutrient

removal for N‐P2O5‐K20 is approximately 7.5‐1.5‐5.5 lbs per ton

• Cost of production: $30‐35/ton and need for

densification

• Need for buffer surrounding field to monitor

and prevent spreading

Miscanthus Biomass Issues

• Willows can grow well on

marginal soils

• Soils should be 18 in. deep

and not droughty or excessively wet

• Slopes should be less than

8% to facilitate harvest under winter conditions

Willow—Adaptation

Photo credit: http://willow.cals.cornell.edu

Willow—Management

Year Operation Inputs 1 Prepare field Fertilize, Plant Weed Control Cuttings, Fertilizer, Diesel 2 Coppice first year plants to shrub Diesel 5 Harvest Diesel 9 Harvest Diesel 13 Harvest Diesel 17 Harvest Diesel 21 Harvest Diesel

Photo credit: http://willow.cals.cornell.edu

Year 1 Years 4‐21 Yield (tons/acre/3 years) 12 Price ($/ton) $0 $45 Returns /Harvest (Harvest: yrs 4,7,10,13,16,19,22) $0 $3780 Variable Costs Site Prep $193 $0 Planting $640 $0 Weed Control $186 $0 Other Establishment $115 $0 Harvesting $0 $2520 Total Costs $1019 $2520 Net Return/acre every 3d yr ($1019) $267 Annual income over 21 yrs ‐$16

Willow—Production Costs

• Low impact production system
• Cost of production: $31/ton with 20 year

investment

• Competition with wood chips in Northeast
• Some alternative uses
• Harvest costs can be reduced relative to

crops with annual harvests

Willow—Biomass Issues

• Various options exist for growing bioenergy

crops in our region

• Markets vary for these crops—be sure you

have a market before investing

• Some crops have alterative uses that can

add to profitability

• Co‐product values are also important for

some crops such as corn and soybeans

Summary

• Based on corn ethanol experience, having a

value chain that provides returns to farmer, landowner, industry, and processor is critical

• The ideal bioenergy crop has multiple uses,

prices above production costs, stable long term demand, minimal environmental impact, and low carbon footprint

Summary

• There is potential to grow bioenergy feedstocks

in our region

• Markets are limited for a few options, but are

developing, along with alternative markets

• Developing higher yielding and lower cost

production, use of marginal soil resources and higher prices could lead to more production potential

Summary

Farm Energy IQ

Bioenergy Feedstock Production

Questions?